For a generation of middle-class families, a campus offer from Tata Consultancy Services, Infosys or Wipro symbolized arrival.

It meant stability after years of entrance exams, coaching classes and rising education costs. An early IT job wasn’t just a job, it was a guarantee: steady income, social standing, and a predictable route to financial security.

This security is weakening.

India’s IT services sector is financially stronger and more global than ever. Revenues are at record highs, balance sheets remain strong, and hiring continues. However, for entry-level engineering graduates, the economics look very different.

Base salaries for freshmen have barely changed in nearly two decades. Once tuition inflation, rising rents, and daily expenses are factored in, the real value of that starting salary has been significantly reduced.

The comparison of 19 years

An oft-cited example captures stagnation. A post on Reddit notes that in 2007, a TCS Assistant Systems Engineer Trainee earned approximately Rs 3.16 lakh per year. In 2026, the same position pays around Rs 3.36 lakh per year, according to Careers360, an increase of just Rs 20,000 per year for almost nineteen years.

The pattern extends across the sector. Entry level packages from Infosys, Wipro and MNCs like Accenture largely remain in the Rs 3-4 LPA range. On paper, salaries look stable. In terms of purchasing power, they have decreased.

Higher costs, pay plate

While fresher salaries have remained largely static, the cost of obtaining the degree has risen sharply. The cost of a BTech has almost quadrupled since 2010, driven by rising fees and the expansion of private institutions. Today, families typically spend Rs 10-25 lakh, often financed through loans.

At the same time, the costs of urban living, rent, transportation, food, and health care have risen steadily. The supply of engineering graduates has also increased seven- to eightfold, intensifying competition for entry-level positions.

The mismatch is clear: industry profits have expanded, education costs have risen, the number of graduates has increased, but starting wages have not kept pace.

Decrease in purchasing power

In the late 2000s, an LPA salary of Rs 3-3.5 could support a basic but stable lifestyle in major IT hubs. Today, income itself often struggles to cover deposits, EMIs and routine expenses. Estimates suggest that the real purchasing power of new engineers has shrunk by 50 to 60 percent compared to fifteen to eighteen years ago.

A broader concern

Shiksha Nation founder and CEO Saurabh Kumar told India Today, “Offering top percentile JEE graduates a starting salary of around Rs 3 lakh per annum is a wake-up call for India’s education industry ecosystem.”

“Outstanding academic results must be translated into fair market value, not just headline offers, but meaningful salaries that recognize talent, encourage innovation and support a decent quality of life. It’s not just an engineer’s problem, it’s a systemic challenge that educators, industry and policymakers must address together,” he added.

This points to a structural imbalance between the cost of education, the volume of graduates entering the market and the way entry-level skills are priced.